Act 3 is the anti-lead-by-the-nose act. In fact, when you start, you have no missions at all! So you go wandering into the Spider Forest. When you hit the Spider Cavern (NOT the Lair) you get a jade figurine. Finding this triggers this quest. Nearby you also find the trigger for Quest 3, by the way. Anyway, bring the Jade Figurine to Cain. He says, ooooh show Meshif. OK, show Meshif and he gives you a Golden Bird for it. Now show this to Cain. Cain says Ku Y'leh's ashes are in it. Shwo this to Alcor. Alcor is impressed, and says to come back later. Just leave and re-enter, and he'll give you a special potion that permanently adds 20 points to your life rating. That's it for this quest!